China stocks jump on Wall Street rebound, PBOC support vow

SHANGHAI: China stocks jumped on Friday, on track for their best session in two months, after a dramatic Wall Street rebound overnight and China’s central bank chief promised stronger support for the real economy.

** The blue-chip CSI 300 Index rose 2% by the end of the morning session, while the Shanghai Composite Index climbed 1.6%. Both indexes were on track for their biggest daily rise since Aug. 11.

** The Hang Seng Index and the Hang Seng China Enterprises Index were up 3.4% and 3.2%, respectively.

** Asian shares tracked Wall Street higher, although gains could quickly unwind as investors grapple with the reality that surging US inflation will likely lead to higher interest rates for longer, hastening a global recession.

** China’s central bank will put emphasis on supporting infrastructure construction and quicken the pace to deliver home projects, Governor Yi Gang said.

China stocks mixed, Hong Kong shares extend losses ahead of US inflation data

** “Sentiment has recovered marginally from YTD (year-to-date) lows after Golden Week. However, we believe the market is likely to stay volatile given the escalation of US export restrictions against China and Omicron resurgence,” Morgan Stanley said in a note.

** Data showed China’s consumer prices in September rose at the fastest pace since April 2020, in line with forecast in a Reuters poll of analysts.

** Nomura analysts expect China will not introduce major easing of the zero-COVID strategy or other significant policy changes between now and March 2023, until the leadership reshuffle is over after National People’s Congress next year.

** Healthcare stocks soared 7.3% to lead gains. Beigene Ltd advanced 8.4% after a 14.5% jump in the previous session on positive data from a late-stage study of a blood cancer drug.

** Information technology, food & beverage, non-ferrous metal and transportation shares were up roughly 2% each.

** Chinese authorities have repeatedly endorsed the dynamic zero COVID-19 policy ahead of a Communist Party Congress, dousing some hopes of an easing.

** Tech giants listed in Hong Kong rose nearly 4%, and mainland property developers traded in the city advanced 4.4%.